From large institutions to wealthy individuals, investors are looking to timber as a place to put their money.
For timber investment is seen as giving strong rates of return with little risk, and has tax advantages as an added bonus.
But for many, finding investment opportunities is proving extremely difficult.
Some investors gain access to timber through timber investment management organisations (TIMOs) in the US.
Current TIMO investment in US timberlands is more than US$9bn, helped by the consolidation and restructuring of many forest companies which saw some sell off their timberlands.
Atlanta-based TIMO, Timbervest LLC , manages more than 500,000 acres of timberland with a market value of more than US$700m.
The company, which normally expects a minimum investment of US$1m, is helping small investors to “get into timber” by allowing them to pool together and work with wealth managers to secure a piece of its new US$250m fund.
Timbevest’s chief executive Joel Shapiro said investors can expect low yield in the first few years, and returns of 10-14% on a yearly basis over a 10 year period.
He said it is hard to lose money in timber, adding: “It doesn’t mean you are going to make a lot of money, but it’s a nice, conservative place to invest.”
